Defence company Cobham continues to move higher as bid speculation refuses to die down.
After yesterday's 4% rise, the company's shares have climbed another 2% - up 4.7p to 208.3p - on talk of possible interest from US group Northrop Grumman, BAE Systems or Italy's Finmeccanica.
At the end of a week of frantic bid talk, Diageo was also said to be on the takeover trail. The drinks group, whose brands include Guinness, Johnnie Walker and Smirnoff, was reported to be interested in Turkish spirits business Mey Icki. Mey Icki, the country's dominant producer of the anise-flavoured drink raki, could fetch up to $2.5bn. Private equity owner TPG is believed to be keen on an initial public offering or a sale of the business.
Diageo, up 14p at £11.77, has also been linked this week with a possible break-up bid with Bacardi for the spirits division of US group Fortune Brands. It is also widely believed to be interested in Moet Hennessy. Jonathan Cook at RBS said:
Diageo can take advantage of its balance sheet strength to improve its footprint through acquisitions. Mey Icki could be an interesting way for Diageo to enhance its emerging market profile.
Mey Icki controls around 70% of the Turkish market for local spirit, raki, and also produces wine, vodka and gin. Around 15% of sales are exported mainly to the Turkish diaspora.
The attraction for a global spirits company such as Diageo is the well established distribution network they would contol in Turkey, with the ability to push their own brands through this and to develop further the existing local products.
From Diageo's perspective this would be an interesting addition, it would show that they are improving upon their emerging market footprint and Turkey is seen as an attractive long-term growth market.
